Mining executive Duncan Wanblad, a shoo-in for the role of group CEO of the imminent megamerger between Anglo American and Canadian copper miner Teck, said the tie-up, which will create a $50bn group, is moving at pace.
Wanblad told Anglo American shareholders that the merger, which will see the combined group have its headquarters in Canada, was designed to unlock significant value in the near and long term while offering Anglo’s shareholders more than 70% exposure to copper.
“This has been a pivotal year for the future of our business both in terms of simplifying our portfolio and delivering long-term value-accretive growth through the transformation merger to create Anglo Teck,” Wanblad said at the group AGM on Wednesday in London.
“The rapid progress we are making towards delivering this highly attractive combination is down to the sheer calibre of our teams. Together, we are taking the next strategic step to accelerate our growth, designed to unlock significant value for our many stakeholders for decades to come.”
After the merger, which is subject to shareholder and regulatory approvals, the merged group will be called Anglo Teck.
Anglo will own 62.4% of the merged group, with Teck owning the rest.
The merged group will have its primary listing in London and secondary listings in Johannesburg and Canada, with a listing in New York also on the cards.
South African-born Wanblad will be the enlarged group’s CEO, while Teck CEO Jonathan Price will be his deputy. Anglo CFO John Heasley will retain his position under the combined group while Teck will appoint the board chair, with board members equally split.
Anglo has embarked on a portfolio simplification process in which the group hived off its platinum business and put up its diamonds and nickel businesses for sale.
The hunt for copper assets has fuelled mergers in the mining industry. Anglo itself was subject to three unsolicited bids by BHP, the world’s largest mining house.
The megamerger between Glencore and Rio Tinto also fell through this year over differences on valuation. The deal would have created the world’s largest mining group with the biggest copper exposure.
The collapsed deal comes amid huge consolidation in the copper industry, as mining majors look to take advantage of rising global demand for the metal, driven by the green energy transition.
Demand for copper, which is expected to increase 50% by 2040, has risen 40% in the past year.
Anglo shareholders are in line for a $4.5bn special dividend after completion of the Teck transaction.
“Through the merger to establish Anglo Teck, be assured that your board has every confidence that we are propelling the combined entity to the forefront of our industry in terms of value-accretive growth in responsibly produced critical minerals, and we continue to progress this formidable combination towards completion,” Anglo chair Stuart Chambers said.
“I am also very pleased that our shareholders have stood to benefit from considerable returns as the inherent value of Anglo American is brought to the fore both through our portfolio optimisation, where we have made great progress, and through the long-term growth optionality and delivery capabilities that we intend to embed as we form Anglo Teck.”
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